Structuring Agreements Between Multiple Investors

[Richard Cornacchia]

Two other people and myself are looking to buy our first rental property together and are trying to determine the best structure to set up the agreement (such as an LLC). We are looking to purchase in the Memphis area. One person lives in Illinois, one in Tennessee, and the other in Texas. We plan on continuing to buy more properties together in the future. Are there any recommendation that would be the most advantageous structure for our partnership? Also, are there any recommendations for real estate attorneys in Memphis that specialize in our situation? Thank you in advance for the guidance.

[Curt Davis]

Why are you wanting partners ? Only reason I can think of is to pool funds together. If your doing conventional financing, when you guys buy 1 home it’s as if each of you are buying and counts against you all so if you ever break away all the loans will count against you buying on your own. 

Good luck